Proposal for a COUNCIL REGULATION (EEC) allocating a special reference quantity to certain producers of milk and milk products
Date: 1993-03-22
Institutions: European Commission
Subjects: agricultural quota, milk, milk product, non-marketing premium, regulation of agricultural production

COMMISSION  OF  THE  EUROPEAN  COMVIUNITIES 

C0MC93) 89  finai 

Brussels, 2 2 March  1993 

Proposal  for a 

^iKirn  REGIHATION  (EEC) 

of 

allocating  a special reference quantity 

to certain producers of milk and milk products 

(presented  by  the  Commission) 

_ „ ^ j £ e «-  .^.."yggjEgi 

jfjjWj 

E X P Ï i A N Â T o Rï  MEMORANDUM 

The Council to date has amended the Community  rules on milk quotas by two 

successive Regulations to take account of the  judgments  of the Court of 

Justice  in favour of producers who were unable, as a result of an 

undertaking  not to market milk or to convert dairy herds  in return  for a 

premium pursuant to Regulation  (EEC) No  1078/77, to market milk or dairy 

products during the reference year selected by the Member  state in 

connection with the implementation  in 1984 of the additional  levy scheme. 

The provisions thus amended of Council Regulation  (EEC) No  857/84 adopting 

general rules for the application of the levy excluded  from the  allocation 

of a special reference quantity producers who became transferees of a 

premium through the acquisition of a holding  subject to an undertaking where 

they had already received a reference quantity,  in respect of another 

holding, when the quota scheme was implemented  in 1984. 

The Court of Justice in its judgment of 3 December  1992 declared the 

exclusion of transferees of the premium  invalid.  Steps should be taken, 

therefore, to make available to this new class of potential recipients the 

opportunity  of obtaining  a special reference  quantity. 

The provision declared  invalid by the Court is Article  3a of Regulation 

(EEC) No 857/84 which will be repealed on  1 April  1993.  It is necessary, 

therefore, to legislate in a new Regulation which it would seem preferable, 

given its transitory nature, to make autonomous.  The new basic  Council 

Regulation  (EEC) No 3950/92 establishing an additional levy scheme for a 

further seven periods is not therefore being amended. 

The provisions of the present proposal compel the new recipients of 

quantities to comply with the same conditions as their predecessors only to 

the extent that this does not conflict with the fact that they are already 

producing milk.  That aside, the requirements  imposed on the first two 

clanaea of producers who have been allocated quotas are  imposed also <>n this 

third class. 

While the Community has twice in the past taken the necessary  steps to 

provide the Member States, generously, with the quantities they required to 

meet their obligations, it would seem that a solution must now be found 

within the guaranteed total quantities of the Member States concerned, in 

line, moreover, with the Commission's  statement to the Council at the time 

of the last Community programme  for buying back quantities. 

c o u n c il  R e g u l a t i on 

(KIC) 

tso 

/ 93 

of 

allocating a special reference quantity 

to certain producers of milk and milk  products 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having regard to the Treaty establishing the European Economic  Community, 

and in particular Article 43 thereof, 

Having regard to the proposal from the commission(*), 

Having regard to the opinion of the European Parliament^2) 

Whereas certain producers of milk and milk products, as a result of having 

given an undertaking not to market milk or to convert dairy herds, did not 

supply or sell milk or milk products from their holding during the reference 

year adopted by the Member states in the context of the implementation of 

the quota system;  whereas in consequence those producers were not allocated 

a  reference quant ity; 

Whereas Council Regulation  (EEC) No 857/84 of 31 March  1984 adopting general 

rules for the application of the levy referred  to  in Article  5c nf 

Regulation  (EEC) No 804/68  Jn U»« ml L k and milk  pi injuria gad m  (J) hatt !»«»)( 

amended successively  in favour of those producers  by koqu I nt. jona  (ttfc'') 

tt>,* 

764/89<^) and  1639/9l(5>; 

(1) 0J No C 

(2) 0J NO C 

(3) OJ No L 90, 1.4.1984, p. 13 

(If) OJ No L 

(5) OJ No L 

Whereas  the Court of Justice  in its judgment of 3 December  1992 in Case C-

264/90 declared  invalid the second  indent of Article  3a(l) of Regulation 

(EEC) No 857/84 as provided  for in the abovementioned Regulations  (EEC) Nos 

764/89 and  1639/91 in so far as it excludes  from the allocation  of a special 

reference quantity the transferees of a premium  granted pursuant  to council 

Regulation  (EEC) No  1078/77 of  17 May  1977 introducing  a system of premiums 

for the non-marketing  of milk and milk products and for the conversion of 

dairy  herds(*), where the transferees have already  obtained  a reference 

quantity  for another holding under Article  2 of Regulation  (EEC) No 857/84; 

Whereas Council Regulation  (EEC) No 3950/92 of 28 December  1992 establishing 

an additional levy in the milk and milk products  sector(2) repeals 

Regulation  (EEC) No 857/84 with effect  from  1 April  1993;  whereas the 

inferences should be drawn from the abovementioned  judgment  in a new 

Regulation; 

Whereas under Article  3a of Regulation  (EEC) No  857/84 the special  reference 

quantity  is provisionally,  and subsequently  definitively, allocated  subject 

to compliance with certain conditions;  whereas the said conditions  specify 

in particular that the applicant  concerned must effectively  recommence 

activity as a milk producer which he had to abandon completely;  whereas in 

the present case the transferee  is an active milk producer;  whereas, 

therefore,  for the allocation of the special reference  quantity  he cannot be 

subject to condiitions that are identical with those  laid down  in Article 3a 

of Regulation  (EEC) No 857/84; 

Whereas the Member  states must remove the quantities  required  for the 

allocation of the special reference quantities  from the national reserve, 

which they must replenish to that end pursuant to Regulation  (EEC) No 

3950/92, 

(1) OJ No L  131, 26. 5.1977, p.  1. 

(2) OJ No L 405, 31.12.1992, p.  1. 

HAS ADOPTED THIS REGULATION: 

.#• 

Article 1 

A producer, as defined in Article 9(c) of Regulation (EEC) No 3950/92, who 

is the transferee of a non-marketing or conversion premium pursuant to 

Regulation (EEC) No 1078/77, shall receive a special reference quantity 

provided: 

-  he establishes that he has taken over and observed the undertaking not to 

market milk or to convert dairy herds made by the transferror in respect 

of the acquired holding and received the balance of the premium; 

-  the said undertaking expired after 31 December 1982, 

he is not eligible under Article 3a of Regulation (EEC) No 857/84 as a 

consequence of having received a reference quantity pursuant to Articles 

2 or 6 of that Regulation; 

he has not, on the date of the application referred to in Article 8, 

transferred all of the acquired holding. 

Article 2 

The special reference quantity shall be established by the Member State in 

accordance with objective criteria on the basis of the quantity in respect 

of which entitlement to the premium has been retained or acquired less a 

percentage representing all the reductions applied to the reference 

quantities fixed pursuant to Article 2 of Regulation (EEC) No 857/84, 

including in all cases a basic reduction of 4.5%, or to Article 6 of that 

Regulation. 

Where a producer has already obtained, on whatever grounds, a reference 

quantity in respect of the holding acquired, the special reference quantity 

referred to in the first paragraph shall be reduced by the same amount. 

-  4 -

Article 3 

The quantities required for the allocation of the special reference 

quantities  shall be removed from the reserve referred to in Article  5 of 

Regulation  (EEC) No 3950/92. 

Article 4 

The specific reference quantity may not be the subject of any programme to 

abandon milk production before  31 March  1996 or of any temporary  transfer as 

referred to in Article 6 of Regulation  (EEC) No 3950/92 before  31 March 

1997. 

Article 5 

Where the holding acquired or part thereof  is sold or leased before  31 March 

1996, the corresponding  special reference quantity  shall revert to the 

national reserve referred to in Article  5 of Regulation  (EEC) No 3950/92. 

Article 6 

A producer who has received a special reference quantity under this 

Regulation shall not be liable for the additional  levy for the quantities 

produced before the tenth period of application of the  scheme and which do 

not exceed the reference quantity he possesses already plus the said special 

reference  quantity. 

Article 7 

The provisions of this Regulation  shall apply equally  if the holding 

concerned has been obtained by way of inheritance or analagous means. 

- s -

Article 8 

Producers shall submit an application for the allocation of a special 

reference quantity to the competent authority in the Member State before 1 

June 1993. 

Article 9 

Detailed rules for the application of this Regulation shall be adopted in 

accordance with the procedure laid down in Article 30 of Regulation (EEC) no 

804/68. 

Article 10 

This Regulation shall enter into force on the third day following its 

publication in the official Journal of the European Communities. 

This Regulation shall be binding in its entirety and directly applicable in 

mil Itesber States. 

at m t t t li 

For the council 

Financial  Statement 

Date 

1. BUDGET  HEADING  > B1-20 

APPROPRIATIONS :  5.315  Mio ECU 

2. TITLE : 

Proposal  for a Council  Regulation  allocating a special  reference  quantity  to certain  producers  of milk 
and milk  products 

3. LEGAL  BASIS :  Article  43 

4. AIMS 

The purpose  of  the measure  is to draw  the  inferences  from a judgment  delivered  by  the Court  of  Justice 
on 3 December  1992  in which  it declared  invalid  for  the third  time  the Community  provisions  in favour 
of the producers  known  as the SLOM  producers. 

5. FINANCIAL  IMPLICATIONS 

5.0  EXPENDITURE 

- CHARGED  TO THE  EC  BUDGET 
(REFUNDS/INTERVENTIONS) 

- NATIONAL  AUTHORITIES 

- OTHER 

5.1  REVENUE 

- OWN  RESOURCES OF  THE EC 
(LEVIES/CUSTOMS  DUTIES) 

-  NATIONAL 

5.0.1  ESTIMATED  EXPENDITURE 
5.1.1  ESTIMATED  REVENUE 

5.2 METHOD  OF  CALCULATION 

PERIOD  OF  12 MONTHS 

(Mio ECU) 

CURRENT  FINANCIAL  YEAR 
(1993) (Mio  ECU) 

FOLLOWING  FINANCIAL  YEAR 
(1994) (Mio  ECU) 

1995 

1996 

1997 

1998 

6.0  CAN  THE  PROJECT  BE  FINANCED  FROM  APPROPRIATIONS  ENTERED  IN THE  RELEVANT  CHAPTER  OF  THE  CURRENT  BUDGET ? 

6.1  CAN  THE PROJECT  BE  FINANCED  BY  TRANSFER  BETWEEN  CHAPTERS  OF  THE  CURRENT  BUDGET ? 

6.2  WILL A SUPPLEMENTARY  BUDGET  BE NECESSARY ? 

6.3  WILL  FUTURE  BUDGET  APPROPRIATIONS  BE NECESSARY ? 

COMMENTS : 

As  it concerns a measure which  aims at-the allocation  of special  reference  quantities  for certain  producers 
(SLOM  producers),  removed  from  the national  reserves, thus avoiding  an  increase  of  the overall  quota  level, 
it has no financial  implications  for  the  budget. 

ISSN 0254-1475 

COM (93) 89 final 

DOCUMENTS 

EN 

03 

Catalogue number : CB-CO-93-lîl-EN-C 

ISBN 92-77-53548-2 

Office for Official Publications of the European Communities